Jangwi New Town release area in Seongbuk-gu, Seoul, mentioned as a promising candidate for public-led development announced in ‘2·4 Real Estate Measures’. Reporter Kim Beom-jun [email protected]
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“This real estate countermeasure will result in’transaction shock’, not’supply shock’. In fact, it is the same as the’Restriction of Real Estate Transactions Act’.
Since the government announced on the 4th that it will supply 836,000 households nationwide, including 323,000 households in Seoul, by 2025, there have been concerns about a’deal cliff’ at the site. It is growing.
This is because real estate such as houses purchased after the announcement date (4th) has decided not to give priority to apartment supply (right to move in) even if public-led development takes place.
The problem is that no target site has been decided yet for the’city center public housing complex project’ that develops station areas, semi-industrial areas, and low-rise residential areas, and the’public direct implementation maintenance project’ in which the public is the subject of reconstruction and redevelopment. In the case of the house where you live now, it is said that it can become a public-led development area at any time, but can be liquidated in cash. Cash liquidation means not receiving a new apartment after development and being compensated at an appraisal price lower than the market price.
It is intended to prevent speculation, but there are observations that the seeds of the transaction will dry out in the market. The transaction of villas and detached houses in the redevelopment area, where it is difficult to promote its own business, was hit directly. The sale of apartments has also become hesitant except for new construction that has already been developed and the final reconstruction that is about to be approved for management. In the online real estate community, complaints such as “You have to buy only ambiguous constructions or expensive new constructions that can never be redeveloped or rebuilt in the public,” “I don’t know when the supply will be, but are you saying that you should only buy jeon or rent?”
Professor Shim Gyo-eon of Konkuk University said, “If you buy a house from now on, you will have uncertainty that can cause damage at any time. As of the date of the announcement of the countermeasure, cash liquidation will be decided without exception, and the property rights of the buyer will be violated. said. Some point out that it may be unconstitutional to apply cash liquidation retrospectively to buyers of houses before designating a business site.
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No one knows where it will be developed… Confusion among home consumers
“The only option to buy a house is expensive new apartments or Gangnam reconstruction with no possibility of public-led development.”
“Is this saying that anyone who owns a house on the site of development should not be sloppy until the development is complete?”
When the government came up with an intensive anti-speculation measure that could be accepted as a “transaction restriction law” through the “2·4 real estate countermeasures,” the internet real estate community poured out its originality. It is excessive that the government has decided not to give priority to real estate buyers after public-led development after the 4th. This is because there is no distinction between speculative demand and real demand. As the controversy over property rights infringement and unconstitutionality arose, it is pointed out whether the government has failed to fully consider the impact while urgently preparing countermeasures.
○“Both homeowners and prospective buyers are damaged”
There is growing concern that a large number of well-meaning victims may emerge as a measure to prevent speculation. This is because if real estate such as apartments bought after the 4th are included in the’Public Direct Implementation Maintenance Project’ and’City Public Housing Complex Project’, cash is unconditionally liquidated after the development is made. At the time of purchase, the same standards apply regardless of whether the house was unrelated to the maintenance business or was purchased for actual residence. Although not immediately, public-led development may be promoted in a few years, leaving buyers uneasy. It means that homeless people living in jeon or rent have become quite burdened with buying a house.
Homeowners, such as those with potential for redevelopment, also suffered damage. As the demand to buy disappeared, it became difficult to sell the house. If the currency is poor, the price can be lowered. A homeless person who posted on the homepage of the Ministry of Land, Infrastructure and Transport said, “I have to buy a house by avoiding even 222 areas in the projected development area.” “I am very confused and anxious about trying to move out because the rent for an apartment has risen so much. Lee Eun-hyung, a senior researcher at the Korea Institute for Construction Policy, said, “The designation of the business site will be done in the second half of the year, but until then, both buyers and sellers are completely tied up.” I looked into it.
There may be a’balloon effect’ in which demand is rushing to places where public-led development is low. This means that the purchase tax may be concentrated on Gangnam reconstruction apartments or new apartments that have already been developed. Ji-Hae Yoon, senior researcher at Real Estate 114, said, “It is not immediately, but in a few years, you may be reluctant to buy a general apartment that can be a target for public-led development.” did.
○“The controversy over infringement of property rights is likely to grow”
There are criticisms from the legal and academic circles that it is highly unconstitutional, such as infringement of property rights. The issue is whether to apply retroactively. In the existing reconstruction and redevelopment, even if you purchase a house in which a cooperative was established, cash settlement is not unconditionally. Redevelopment is limited to granting new tenant rights only if it is purchased after approval for management disposal. On the other hand, in the second and fourth measures, all buyers after the announcement date of the measures on the 4th were selected as potential cash liquidation targets.
It is also a problem to violate the property rights of indigenous peoples who try to sell their homes. It is explained that there is a possibility that it will become a’water shell’ (a house that cannot receive the right to occupy), so the demand to buy a house is frozen, limiting the exercise of property rights by natives. Since you cannot sell your existing house and move, you can prevent your freedom before living.
Confusion over the timing of the contract is also expected. Even if a provisional contract is signed before the announcement of the measures and the main contract is scheduled to be signed after the date of the announcement of the measures, it is not clear whether or not they are eligible for cash settlement. Hyang-Hoon Kim, attorney at Law Firm Centro, said, “It is obviously infringing on property rights to see all consumers as speculators, and liquidate cash collectively,” he said. “It is necessary to prepare a transitional rule to prevent innocent victims from occurring.” Kim Gyeong-gyu, head of the Korea Investment & Securities Institute for Asset Succession, emphasized, “The time limit for granting priority supply rights needs to be adjusted not after the countermeasure date, but after the designation of the business district.”
In response, the Ministry of Land, Infrastructure and Transport said that it is an inevitable measure to prevent speculation. An official from the Ministry of Land, Transport and Maritime Affairs said, “It is unlikely that two-thirds of the residents will agree and develop publicly-led initiatives in areas where there has been a lot of change of hands.” Revealed.
Reporter Lee Yoo-jung/Shin Yeon-soo/Jeon Hyeong-jin [email protected]
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